German hospital association warns every second clinic could go bankrupt under reform savings
The German Hospital Association says government savings plans would cut revenues by 8% in 2027 and put 49% of locations at high failure risk by 2030, threatening 140,000 jobs.
Warning of bankruptcies
The German Hospital Association (DKG) has issued a stark warning about the savings plans in the government's healthcare reform. DKG chief Gerald Gaß told the Redaktionsnetzwerk Deutschland that if the cuts are implemented as planned, hospitals will lose 8% of their revenues in 2027. A recent study commissioned by the association found that by 2030, 49% of all hospital locations would face a high probability of failure.
Translated, that means we can expect every second clinic to go bankrupt.
Gaß added that the cuts would also force hospitals to shed 10% of their workforce, affecting around 140,000 employees. He said the industry is already working at its limit.
- Bundestag expert hearing on the savings package
- Hospitals lose 8% of revenues if cuts take effect
- 49% of hospital locations face high failure probability
Reform goals and transition
Gaß stressed that the DKG supports the objectives of the hospital reform, which include greater specialisation, merging smaller facilities, and new care structures. However, he insisted this restructuring must be carried out in an orderly fashion over about ten years. He reiterated that 400 to 500 classic hospital locations could be eliminated in the future, but many facilities that should be preserved or converted might not survive the planned cuts.
Political context
The savings are part of the Contribution Rate Stabilisation Act pushed by Health Minister Nina Warken (CDU) to improve the financial position of statutory health insurance. The reform replaces the current system of pure case-based lump sums with fixed holding fees, aiming to reduce economic pressure for high operation numbers. Medical treatments are to be standardised into 65 nationwide uniform service groups. Resistance to parts of the bill has come from federal states and hospital representatives.
Staffing dispute
Gaß offered a compromise on limiting the recently sharp rise in nursing costs, acknowledging the need for an upper limit. In return, he demanded the removal of staffing requirements, which he called unscientific.
There is no scientific evidence whether an intensive care nurse should be responsible for two, two and a half, or three patients. These are numbers derived from abstract calculations on the principle of 'more is better'.
Next steps
An expert hearing on the savings package is scheduled in the Bundestag on Monday, 22 June 2026. Gaß had already attacked Warken's plans in April, calling them "planless and radical".
